Project Management fees and why you should not pay them!

I have worked at enough digital agencies to see the very best and the VERY WORST out there.

One thing they all had in common which irked me everytime I had to include it on an invoice was a 20% (sometimes higher) Project Management fee.

Hang on, the agency wants the client to pay an additional fee to ensure that they are able to manage a project that the client is paying you to undertake?

When you get in a taxi do you pay the fee on the meter and an additional fee for the GPS that gave the driver the route to your destination?

If you are hiring a company to build you a web site, it’s assumed that they are capable of running a project in a professional manner, so it’s shouldnt be an additional fee to ensure this happens.

In all honesty, it’s just a way for agencies to bump up the fee by 20%. Maybe you should ask to meet the project manager on your account - 90% of the time they don't exist!

I worked at one very well know Sydney agency that would add a 10% strategy fee in addition to the 20% project manager fee. This was across all invoices regardless of the nature of the work. This was a handy was to add 30% to their fee, just for the asking !

Your agency cannot develop projects without a project manager / digital account manager, so their hourly rate shouldnt be tacked on to your invoice.

Tony Featherstone
tony@gallivant.com.au